HEDLines – Archive

The recent weakness in US stocks has brought indices down to levels where we expect to find some support. There has been only one bottom extension (so far) but several indices are re-testing support provided by old compressions, as is normal:…

Stock markets are busy but trendless and it may be that a summer lull has started. We pointed out in the July 31st edition that there was some old-fashioned divergence going on in US indices. This is a concept first codified…

Grains have had a wild ride in the last month. A sharp squeeze in late June/early July ended abruptly and prices have fallen back substantially since then. Now we have seen bottom extensions at a daily scale in Wheat, which…

Dow Jones futures made a daily-scale top extension yesterday: This comes immediately after the occurrence of ‘divergence’ between two Dow indices pointed out in the last edition. This leads us to the conclusion that US stocks are about to enter a period…

The US$ has been weak all year and the decline in the last three weeks has been steep. We have now seen bottom extensions in the $index and top extensions in the Euro against the $, so the decline should…

We have been watching for clues about the next major market moves, as usual. There have been some positive developments in stocks as reported in the last few editions – bottom extensions in a couple of European national indices and…

We pointed out weekly-scale compressions in US stock indices in the May 22nd edition. Prices subsequently moved higher in one of them (the Russell 2K small cap) but not in the others and there has been no ‘follow-through’. Now we…

We recommended buying corn and wheat in the June 13th edition – marked by the blue arrows. Corn has done little since then except range-trade but wheat has exploded higher on crop worries: This move has been quick and big enough…

The drop in equity markets yesterday took different forms in different parts of the world. It was just a violent ‘churn’ within an existing range in say, the S&P but some European markets had already been falling all month and…

Both WTI and Brent crude futures made bottom extensions yesterday. Cover all shorts that you may still have from the May 19th edition and reverse into longs: Obviously this means that all related energy contracts will probably also rally, excluding Nat…